South Korea and Paraguay have signed an economic partnership agreement on trade and investment, marking the second country in South America's Mercosur bloc to clinch such a deal, officials said Friday. Trade Minister Cheong In-kyo signed the Trade and Investment Promotion Framework (TIPF) with Paraguay during a meeting with his Paraguayan counterpart, Javier Gimenez, in Seoul, according to the Ministry of Trade, Industry and Energy. A TIPF is a nonbinding agreement that calls for enhancing economic ties and facilitating cooperative exchanges in various areas. The agreement, however, does not include tariff-free terms like a traditional free trade agreement. "The cooperation channel established with Paraguay's trade ministry is significant as it sets the stage for full-fledged bilateral cooperation in trade, industry and energy," Cheong said. The ministry noted that Paraguay is an attractive trade partner, being one of the fastest-growing countries in the region, with its economy expanding 4.6 percent on- year in 2023. Paraguay also has the potential to become a significant manufacturing hub for South Korean businesses in the region, the ministry added. The ministry also pointed out that South Korean cars accounted for eight of the top 20 best-selling automobiles in Paraguay last year. Source: Yonhap News Agency
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